General Election v's Property Market

Sunday, May 21, 2017

When the snap decision was made by the Prime Minister Theresa May to call a general election, the question on everyones lips in the property industry was "will the snap 2017 General Election slow the Spring property market?" Industry reaction ranged from the pessimistic to the positive on what Mrs May's surprise decision would mean.

It was an understandable question as the market had a definate slow down while waiting for the results of the 2015 General Election called by the doomed David Cameron and the ensuing EU Referendum last year. Anticipation for both results sucked precious weeks and months from those years’ crucial Spring property buying peaks.

This time around there been a mixed reaction from the property and lending industries. The Yorkshire Building Society was first out of the blocks following Mrs May's announcement. Its economist Andrew McPhillips said: ““The housing market is going through a sluggish period at present and a general election adds to the chances of it lasting longer. Home buyers who are well on the way to making a purchase have traditionally not been put off by such surprise macro-events but those only thinking about it may decide to pause.”

North London agent Jeremy Leaf said: “The period of indecision starts from now until the election and thankfully it is relatively short. Inevitably, a lot of decision-making will be put on hold, particularly as the polls fluctuate, and that includes the decision to buy and sell property.”

The British Property Federation believed the snap election would create “short-term uncertainty at a time when it’s critical to maintain business and investor confidence”, a quote attributed to it's Chief Executive Melanie Leech. She also appeared to predict the outcome: “It should, however, provide the next government with a clear mandate to negotiate our future relationship with the EU and deliver the UK’s long-term economic health”.

Jones Lang Lasalle took the view that the election would be positive for the sector. “It will mean that a general election is no longer likely to coincide with the end of the two-year negotiating period following the triggering of Article 50,” said its Head of UK Research, Jon Neale. “The Prime Minister will now be under less pressure to ‘deliver Brexit’ by 2020 – making a transitional phase more likely.”

Ed Heaton, founder of property search agency Heaton & Partners, also believed it would do good “I see the decision to hold a General Election in June as a positive for the property market, particularly as the snap nature of the announcement, means that there has been no long build up with buyers and sellers wanting to hold off,” he said. “Whilst the outcome is widely expected to be a Tory landslide, the element of uncertainty is limited because of this. The prospect of five more years of Conservative rules will be seen by many as a real positive.”

Now we are coming close to election day how has it actually changed? Speaking from our own experience it has not impacted us in anyway except for one - we need more houses. Yes it is true that those people just toying with the idea of moving are perhaps taking a little longer but in all honesty when the right property comes along no-one is postponing that decision.

As mortgage rates are incredibly low a lot of people are also making the decision to strike while the iron is hot to take advantage of locking themselves into a great deal for two years to get ahead of any uncertainty. This means the applicants registered are more likely to have done their homework on financing their purchase and are ready to pounce once their dream home appears making it a very competative market and giving us the ability to create great successes for the vendors.

If you are looking to buy or sell your home do not hesitate give us a call today and we will be happy to help you achieve your goal.

Important Information
All property sales and the financial advice that surrounds them are as unique as the people engaging in the transaction. It is important to not make a decision without seeking professional advice. If you want to sell your home and are considering redecorating before marketing, speak to one of our Property Professionals to get the best advice for presenting your home for sale before making any investment.